AlphaStocks
5.0
Consider Buy

PEGASYSTEMS INC (PEGA)

Information Technology / Application Software

S&P MidCap 400

$42.29

Below average on several measures. Research carefully.

Consider Buy

Score based on 4 of 5 models — moderate confidence

#566out of 1127 in Information Technology

Is PEGASYSTEMS INC a Good Investment in 2026?

PEGASYSTEMS INC (PEGA) scores 5.0 out of 10 on AlphaStocks' composite model, earning a Consider Buy rating. The Piotroski model rates PEGASYSTEMS INC as Strong (8/9). However, the Graham model rates it Caution — Significantly above fair value. PEGASYSTEMS INC currently trades below its estimated fair value of $51, suggesting potential upside. PEGASYSTEMS INC ranks #566 out of 1127 stocks in the Information Technology sector.

This summary is algorithmically generated and is not financial advice.

Key Metrics

P/E19.9ROE56.8Market Cap8B

Estimated Fair Value

$51.0417% below

Fair value above market price. EPS grew 285% year-over-year. ROE of 57% signals strong profitability. P/E of 20x is moderate for this quality level.

Model-based estimate, not a price target.

5-Model Analysis

Each model evaluates this stock from a different angle. Combined, they form the composite score above.

Piotroski

Strong

8/9

Buffett

Strong

Business quality & competitive moat

Graham

Caution

Significantly above fair value

Lynch

Strong

Growth rate vs price (PEG)

Greenblatt

Neutral

Top 10% (rank 10%)

Frequently Asked Questions

Is PEGASYSTEMS INC (PEGA) a good investment?
Based on AlphaStocks' composite analysis, PEGASYSTEMS INC (PEGA) scores 5.0 out of 10, earning a Consider Buy rating. This score is below average, suggesting caution. Fair value above market price. EPS grew 285% year-over-year. ROE of 57% signals strong profitability. P/E of 20x is moderate for this quality level.
What is PEGASYSTEMS INC's Piotroski F-Score?
PEGASYSTEMS INC's Piotroski F-Score status is Strong. The raw score is 8/9. The Piotroski F-Score evaluates financial health using 9 fundamental signals including profitability, leverage, and operating efficiency.
Is PEGA overvalued or undervalued?
Based on AlphaStocks' model-based fair value estimate of $51, PEGA appears undervalued. The stock currently trades 17% below its estimated fair value. Fair value above market price. EPS grew 285% year-over-year. ROE of 57% signals strong profitability. P/E of 20x is moderate for this quality level.
How does PEGA compare to other Information Technology stocks?
PEGASYSTEMS INC ranks #566 out of 1127 stocks in the Information Technology sector, placing it in the top 50% of its sector by composite score. This is an above-average position relative to sector peers.
What do investment models say about PEGA?
AlphaStocks evaluates PEGA using five proven investment models. Piotroski: Strong; Buffett: Strong; Graham: Caution; Lynch: Strong; Greenblatt Magic Formula: Neutral. These models are combined into a single composite score of 5.0/10.

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Scores are algorithm-generated research tools, not investment recommendations. Past performance does not guarantee future results. Always do your own due diligence. Full disclaimer